Is now the time to cash in gold?

Gold has been trading at record highs. It fell last week from a peak of $1,375 an ounce, but it has soared from $900 last summer

The Gold to Go machines dispense up to 250g of gold in bars (Sean Gallup/Getty)
The arrival of gold bullion vending machines in European and Middle Eastern
shopping centres and hotels has sparked fears that the bubble in the gold
price is about to burst.

TG-Gold-Super-Markt, a German firm, has installed 20 “Gold to Go” machines in
cities such as Berlin and Dubai and hopes to bring them to Britain and
America soon. The machines dispense up to 250g of gold in bars.

However, experts say that their appearance could be a signal to sell the
precious metal. Patrick Connolly at AWD Chase de Vere, the adviser, said:
“Any asset class hitting record highs and still attracting increasing
amounts of money is one of the main signs of a bandwagon in progress.

“While gold may have further to go, investors jumping in after such strong
performance has already been achieved are taking a big risk.”